The dairy markets are adjusting to the new regime. Trade threats – and new tariffs on U.S. dairy exports to Canada and China – have spooked the markets and slowed sales. USDA’s Dairy Market News reports that nonfat dry milk (NDM) buyers “are hesitant to add stocks beyond near-term needs.” Importers don’t want to speak for milk powder that might face a tariff down the road. And domestic users are also going hand-to-mouth, anticipating further declines in this export dependent market. Meanwhile, spring has arrived, and milk flows are climbing. The line-up at dryers is getting longer. CME spot NDM market perked up briefly this week, but it quickly retreated to $1.155 per pound, matching the 10-month low set last Friday.
Whey prices just keep dropping. CME spot whey powder fell another 4ȼ this week to 45ȼ, the lowest price since early June. USDA notes candidly, “There are growing concerns among market actors as to what international trading activity will look like over the next few months. Also, domestic end users are aware of market shifts and some report being uninterested in dry whey volumes that are priced above 50ȼ per lb.” The agency went on to describe the market as bearish “with few indications of the alternative in the near term.” Demand for high-protein whey concentrates and isolates remains strong, but there’s plenty of whey left over for powder.
By Dairy Business News Team DP
March 17, 2025
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